Reference no: EM133180665
Assignment - Shareholder's Equity (Cash Dividends, Share Splits, Shares Issued and Outstanding, Retained Earnings) Country: Philippines
Q1) At December 31, 2018 and 2019, ABC Company had outstanding 4,000 shares of P100 par value 12% cumulative, fully participating preference share and 20,000 of P10 par value ordinary share. At December 31, 2018, dividends in arrears on the preference share were P24,000. Cash dividends declared in 2019 totaled P108,000.
What are the amounts of dividend per share on the preference and ordinary?
A. Preference 20; Ordinary 1.40
B. Preference 20; Ordinary 1.80
C. Preference 18; Ordinary 1.40
D. Preference 18; Ordinary 1.80
Q2) ABC Company reported the following in its statement of shareholders' equity on January 1, 2019:
Ordinary share capital, P5 par value, 200,000 shares authorized; 100,000 shares issued 500,000
Share premium 1,500,000
Retained earnings 516,000
Total 2,516,000
Less: treasury shares, 5,000 shares at cost 40,000
Total shareholders' equity 2,476,000
The following events occurred in 2019:
May 1 - 1,000 treasury shares were sold for P10,000.
July 9 - 10,000 shares of previously unissued ordinary shares were sold for P12 per share.
October 1 - The distribution of a 2-for-1 share split resulted in the ordinary share's par value being halved.
How many shares are issued and outstanding at December 31, 2019?
A. Issued 220,000 ; Outstanding 216,000
B. Issued 220,000 ; Outstanding 212,000
C. Issued 110,000 ; Outstanding 106,000
D. Issued 100,000 ; Outstanding 95,000
Q3) ABC Corporation was incorporated on January 2, 2019. The following information pertains to ABC's ordinary share transaction during the year.
January 1 - Number of shares authorized 80,000
February 1 - Number of shares issued 60,000
July 1 - Number of shares reacquired but not canceled 5,000
December 1 - Two-for-one share split
What is the number of ABC Corporation's ordinary share outstanding at December 31, 2019?
Q4) During 2019, ABC Company issued 50,000 P100 par value convertible preference shares for P120 per share. One preference share can be converted into three ordinary shares at P50 par value. On December 31, 2019, when the market value of the ordinary shares was P60, all of the preference shares were converted.
What amount should be debited to retained earnings as a result of the conversion?